HC Deb 06 July 1999 vol 334 cc507-8W
Mr. Woolas

To ask the Secretary of State for Social Security what estimates he has made of the cost of

Percentage of households by amount of savings and gross weekly household income
Gross weekly household income
Capital Less than £100 £100 but less than £200 £200 but less than £300 £300 but less than £400 £400 but less than £500 £500 but less than £600 £600 but less than £700 £700 or more Total households
No savings 43 48 39 27 21 17 13 8 30
Less than £1,500 17 18 22 25 29 26 23 17 22
£1,500 but less than £3,000 9 7 7 9 10 10 12 9 8
£3,000 but less than £8,000 12 11 10 13 14 18 20 18 14
£8,000 but less than £10,000 3 2 2 3 3 3 4 5 3
£10,000 but less than £16,000 5 4 5 6 7 7 8 10 6
£16,000 but less than £20,000 2 2 2 3 3 3 4 5 3
£20,000 or more 7 7 12 14 13 15 18 28 14
Total 100 100 100 100 100 100 100 100 100

Notes:

1. The estimates are based on sample counts that have been adjusted for non-response using multi-purpose grossing factors that control for region, Council Tax band and a number of demographic variables. Estimates are subject to sampling error and to variability in non-response.

2. It should be noted that questions on assets are a sensitive part of the FRS questionnaire and have relatively low level of response, and hence higher level of imputation, compared to other parts of the survey. Responses are imputed in around one in ten cases. Evidence also suggests some under reporting of capital by respondents, and figures for income from these sources for pensioners are lower on the FRS compared to other surveys such as the Family Expenditure Survey. In addition, the under reporting of capital is likely to lead to an underestimate of income from the investment and thus contribute to underestimating gross weekly household income.

3. All percentages have been rounded to the nearest integer.

Source:

1997-98 Family Resources Survey (GB)

increasing the age additions within the basic state pension by (a) £3 a week for the over-75s and (b) £5 a week for the over-80s. [89376]

Mr. Timms

The net cost of introducing age addition of £3 per week for pensioners aged 75 to 79 and increasing the age addition paid to over-80's from £0.25 to £5.25 would be £640 million.

Notes:

  1. 1. Estimates for Retirement Pension have been provided by the Government Actuary's Department.
  2. 2. Means-tested benefit offsets have been estimated using the Income Support Simulation Model and the 1996/97 Family Resources Survey.
  3. 3. Estimates are in current prices and benefit rates, and are rounded to the nearest £10 million.